Maintaining that the environment in general and schools in particular largely influence whether an individual's talents will be identified/encouraged or ignored/discouraged, the document focuses on ways to identify and stimulate talents in socially underprivileged individuals. The study was based on two approaches. The first approach, systems theory, was used to develop an analytical framework. According to the systems theory approach, systems (including organizations such as schools and families) are classified according to the nature of their relationship with the surrounding environment. In addition, laws are sought which govern the behavior of each part of the system and the interaction between the system and the environment. The second approach, a case study or 'life histories' approach, was used to show how several individuals in a poor rural setting achieved a success or failure status and either did or did not develop a potential talent. Examples are presented of the ways in which an individual's talent or self-esteem is influenced through interaction with school, society, family, and cultural groups. For instance, an individual's self-esteem can suffer if he/she perceives low achievement in school and can suffer further if the family exhibits high anxiety in response to perceived or actual low achievement. Because findings from much of the literature on poverty and achievement indicate that poverty reinforces failure in school, the authors suggest that educators try especially hard to reverse these tendencies toward failure. Suggestions for reinforcing potential talents include that educators design curricula which are appropriate for individual needs, refrain from judging students as low achievers because they have low social status and poor school records, and assume that all students--and, particularly, underprivileged ones--possess undiscovered intellectual potential. (DB)